New Delhi: Eversource Capital-backed Radiance Renewables Pvt. Ltd claimed Rothschild & Co. for the sale of the platform that serves commercial and industrial (C&I) customers in a deal with a potential equity value of about $150 million, two people aware of the development said. Radiance currently has an operational portfolio of 500 megawatts (MW), and plans to build capacity to 2 gigawatts (GW) over three years.
Investors in Radiance Renewables include India’s quasi-sovereign wealth fund National Investment and Infrastructure Fund (NIIF) and the UK government’s Foreign, Commonwealth Development Organization (FCDO).
“The sales process will be launched soon,” one of the two people said on condition of anonymity.
India’s C&I segment has attracted strong investor interest, driven by the nation’s projected green energy trajectory, as well as rules allowing large power users to source energy from the open market rather than the more expensive grid. C&I projects are also shielded from risks such as power procurement restriction by state-controlled power distribution companies.
Recently, Amplus founder Sanjeev Aggarwal and I Squared Capital joined hands to set up Hexa Climate Solutions to cater to C&I sector, in which the New York-based private equity fund will invest around $500 million. Also, NIIF and private equity firm Actis Llp are among four firms in the running to acquire Macquarie Asset Management’s Green Investment Group (MAM-GIG) Vibrant Energy platform which has a 1.5-GW C&I portfolio. An outside spokesperson for Radiance Renewables did not respond to emailed questions. “We will not be able to comment on the story,” an Eversource Capital spokeswoman said in an emailed response.
“We do not comment on market speculation,” a spokesman for British International Investment Plc also said in an emailed response.
Questions emailed to Rothschild & Co. spokespeople. and NIIF remained unanswered till press time.
NIIF is sponsored and anchored by the government of India, which holds a 49% stake in it. It mainly focuses on investing in core infrastructure sectors, such as transportation, energy and digital. It manages more than $4.3 billion of equity capital commitments across its three funds – Master Fund, Fund of Funds and Strategic Opportunities Fund.
British International Investment Plc is also a shareholder in Ayana Renewable Power, which is looking to sell a stake of as much as 100% in the green energy company, targeting a stock valuation of around $2 billion. The shareholders are also looking to raise an additional $400 million to fund the company’s growth, as reported by Mint earlier.
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Updated: 18 Nov 2023, 00:00 IST
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